US gubmint shutdown + default + subprime sequel?

**Philippus Flavius Homovallumus** · 07-29-2011, 19:44

Originally Posted by TuffStuffMcGruff

Right, we're all going into poverty. I don't buy the doomsday scenario. I want spending cuts of 20 to 30 percent of government. We could just steam roll out of iraq and afghanistan, slash federal employee wages, sell off land which the government owns. My personal credit is perfect, literally. I have no respect for the debt obligations incurreds hundreds of miles away by individuals who do not represent my interests. Don't bring religion into this. Floating a deficit of 44% to pay for crap we don't need on the backs of our children isn't the most ethical choice.

44% cut Tuff, on August 3rd. What do you think they'll cut? Social Security? Health Care? The Federal support that keeps the likes of Alaska and California afloat?

Maybe they'll cut the army by 44%, that would be fun, all those PTSD'd GI's without jopbs or prospects.

The decifit is not 44% though, it is 11%, 44% is just the money that the Fed won't have if it can't borrow to meet costs. I agree that you need to restructure but if the US cannot service it's debts it will be unable to borrow next year at anything like sensible rates, its world standing will be trash and on the level of a Bannana Republic.

The defecit will go up, there will be deeper cuts, more people will lose their jobs, tax revenue will fall, there will be more cuts, people will lose their jobs...

If you want to know what happens when you can't service your debts ask Greece.

If you want to know what a sudden "rebalancing" of the economy causes for those with the rug pulled out from under them, ask the North of England.

As far as religion goes, the Tea Party brings it into everything so I feel justified in calling it. By the by, abandoning the poor and vulnerable to their fate is also immoral and explicitely un-Christian.